Definition

Noun: A legal arrangement where a person (the grantor or settlor) transfers ownership of assets to a trustee to manage for the benefit of designated beneficiaries. This trust is established and becomes active while the grantor is still alive, distinguishing it from a trust created by a will.

Usage

This term is used in legal, financial, and estate planning contexts to describe a specific mechanism for managing and distributing assets during one's lifetime.

Examples

• The wealthy philanthropist set up an inter vivos trust to provide for her grandchildren's education.
• Creating an inter vivos trust can help avoid the probate process for the assets it holds.
• The terms of the inter vivos trust stipulated that the beneficiary would receive income from the trust property at age 25.

Advanced Usage

• "Fund an inter vivos trust": To transfer assets into the trust.
  • He funded the inter vivos trust with shares of his company stock.
• "Irrevocable inter vivos trust": A common type where the grantor gives up control and cannot alter or cancel the trust after its creation.
  • For tax advantages, they established an irrevocable inter vivos trust.

Variants and Related Words

• Living Trust: A common synonym for "inter vivos trust." The terms are often used interchangeably.
• Testamentary Trust: A trust that is created by a will and only takes effect after the grantor's death. This is the direct conceptual opposite of an inter vivos trust.
• Grantor: The person who creates and funds the trust.
• Trustee: The individual or institution that holds and manages the trust assets.

Synonyms

• Living trust

Antonyms

• Testamentary trust

Noun

1. a trust created and operating during the grantor's lifetime